BUDGET COMMITTEE 3 RD FLOOR COUNCIL CHAMBERS CITY HALL ANNEX THURSDAY, MARCH 22, :00 PM
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1 BUDGET COMMITTEE 3 RD FLOOR COUNCIL CHAMBERS CITY HALL ANNEX THURSDAY, MARCH 22, :00 PM 1. Call to Order by Mayor 6:02 PM 2. Pledge of Allegiance 3. Roll-Call a. Budget Committee Members: Bruce Knight, Mayor Tom Cote, Lance Hoenig, Councilor Maura Herlihy, Danielle Moody, Councilor Robert Stackpole. James Drummey is absent with notice b. City Hall Staff: Finance Director Ronni Champlin, City Manager Steve Buck, c. School Staff: Superintendent David Theoharides, Assistant Superintendent Matt Nelson, Business Manager Gwen Bedell d. School Committee Members: Kendra Williams, John Roux, Emily Sheffield 4. Adjustments to the Agenda: None 5. Approval of the March 8, 2018 and March 15 th 2018 Meeting Minutes: Tabled 6. Public Participation: None 7. Old Business: a. No Old Business 8. New Business: To take action, if appropriate, on the following: a. General Budget Discussion i. Municipal : Proposal for $ 456,000 of Municipal Budget Adjustments
2 ii. School Department: Wages: General Services contract expires June 30, 2018 budget 2% Sanford Regional Communications contract expires June 30, 2019 budget 3% as negotiated Sanford Police Association contract expires June 30, 2019 budget 3% as negotiated Public Works/Highway Local 481 contract expires June 30, 2018 budget 2% Fire Department Local 1624 contract expires June 30, 2020 budget 2% as negotiated Management/Personnel Policies budget 2% (this based on the CPIW average for the previous calendar year) New Positions for 18/19: Planner $ 36,667 8 Months Start Date of November 1 st Part Time Custodian $ 17,097 Custodial Support for City Hall and Department of Public Works Working Foreman PW/Traffic Div. $ 45,677 Street Signs and Plowing Dispatcher $ 42,998 Talking Point Berwick and South Berwick Fire Fighter $ 50,955 Negotiated positions based on long term plan Fire Fighter $ 50,955 Negotiated positions based on long term plan Land Bank Authority $ 103,903 Includes $222,093 of new offsetting revenue rental housing/vacant buildings Sub Total of New Positions $348,252 Total Wages
3 Adjustments brought forward: Payroll Manager $17,454 position approved for an additional 10 hours per week from 30 to 40 hours per week Airport Manager $ 7,500 position approved for wage adjustment (Ranger Solar, Life Flight, Restaurant Renovations) Parks & Recreation Director $ 6,143 position hire in rate based on education and experience/market rate Sub Total of Previous Year Positions $ 31,097 Other Points of Interest Minimum Wage Impacts $ 16,525 Recreation part time salaries $9.00 to $10.00/other summer staff up $.50 per hour Future minimum wage increases - 1/1/2019 $11, 1/1/2020 $12 Call Fire Department $ 21,000 Wages reduced by $13,950 based on Call Fire Company members (use to pay Call Co $54,302 per year) Sub Total POI $ 37,525 Total $416,874
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6 iii. School Department $ 160,297 Cut: (6) Ed Techs $ 179,271 Cut: (2) Interventionists $ 31,060 Cut: Ed Tech HS $ 26,876 Cut: CTE Equip $ 3,300 Cut: CIP Roofs $ 79,280 Cut: Curriculum $ 50,472 Delay New sports $ 63,000 Reduce: Attend Officer Position $ 68,636 Cut: SS Teacher Position $ 70,709 Cut: ESL Teacher Position $ 52,369 Increase Carryover $ 17,627 Reduce: Other Teacher Position $ 802,898 Total
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17 General Discussion of School Budget and what the recommended cuts would be if Budget Committee reduces their impact to property taxes by $ 800,000. Presentation by City Manager Steve Buck on what the proposed School and City adjustments as presented mean to the net appropriation and the next impact to the tax payer. Appropriation increased by 11.55% Revenues increased by 18.40% Next Taxation increases by 3.69%. Mil Rate when taking 41 million in valuation increase into consideration is $ which is a $ 0.01 change in the mil rate from 2017/2018. Overall tax bill to the average tax payer: Home Valuation x 4.42% valuation increase plus mil rate change Net change in homestead taxed home over the last 3 years is in the negative. i.e. Homestead taxed homes are paying less in taxes for 2019 if the budget passes with the proposed $ 1,256,000 in reductions then they were paying 4 years ago (15/16) 2016 Analysis, Importance of the Solar Array: Example of how a large commercial project impacts the tax rates and greatly reduces the tax burden on the single family property tax payer Million project. Adds 4.67% to the overall base of the community. Reduces Single family proportionate share by 3.11%. Decreases the mil rate by 4.67%. b. Vote on 2018/2019 Budget Recommendation as it will be presented to the City Council: i. Motion by Councilor Stackpole, seconded by James Drummey to add back in $ 200,000 to next taxation with the same proportionate split between the School Department and Municipal as was given when cuts were requested. Motion fails 5-2 with James Drummey and Robert Stackpole voting in the minority. ii. Motion by Councilor Herlihy, seconded by Bruce Knight for an amount to be raised by taxation of $ 31,268,292. Use of undesignated funds in the amount of $ 850,000. Net amount to be raised by taxation in the amount of $ 30,418, Lance Hoenig makes a motion to amend the motion and increase the net amount to be raised by taxation by $ 155,000, seconded by Robert Stackpole. 7-0 in favor of the amendment. $ 25,248 City; $ 79,280 for classroom libraries plus $ 50,472 for volleyball and lacrosse. Amendment passes Amended motion: Amount to be raised by taxation $ 31,423,292. Use of undesignated funds in the amount of $ 850,000. Net amount to be raised by taxation in the amount of $ 30,573, to approve the amended motion.
18 Adjusted slides with tax rate predictions and single family homestead property tax impacts:
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24 c. Motion made by Maura Herlihy and seconded by Lance Hoenig to support the : SOUTHERN MAINE REGIONAL SERVICE CENTER, Interlocal Agreement for Regional Service Center (under the authority of Title 20-A M.R.S. Chapter 123, 3801 et seq. and Title 30-A M.R.S. Chapter 115, et seq.) This Interlocal Agreement is made by and between Regional School Unit No. 21 ( RSU 21 ), Regional School Unit No. 23, Regional School Unit No. 57, School Administrative District No. 35, School Administrative District No. 55, School Administrative District No. 60, the Biddeford School Department, the Dayton School Department, the Saco School Department, the Sanford School Department, and the Yarmouth School Department, all Maine school administrative units acting by and through their governing bodies (hereinafter, collectively, the Parties ) Membership in the Regional Service Center will allow for cost savings through joint purchasing and other regionalization efforts. Motion carries Future agenda items Confirm date, time and agenda for next meeting a. Tuesday, April 3 rd i. Approve Budget Committee meeting minutes for March 8, 2018, March 15, 2018 and March 22, ii. Review and make a recommendation on the Bond for the Sanford Regional Airport s Snow Removal Equipment Building iii. Budget Committee Presentation to the City Council 10. Budget Committee Member Comments a. Bruce Knight: Thanks everyone for coming in with a good budget b. James Drummey: Thanks to everyone for coming in with a good budget in an amicable format c. Robert Stackpole: Thanks to everyone for coming together to put together a good budget in an amicable format d. Danielle Moody: Thanks to everyone for the process. It has been an eye awakening process with great detail on the budget. e. Mayor Cote: Thanks to Gwen Bedell and Ronni Sweeney for the breadth of information that can be easily obtained when requested. Asks School Department for a better quantification of the return on investment for various programs. Start having the conversations and gathering the data. 11. Adjourned by Mayor Cote at 8:38 pm
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